Saturday, 31 January 2015
Last updated 15 hours ago
Nov 9 2011 | 12:37pm ET
The Securities and Exchange Commission may depose Raj Rajaratnam's brothers—as well as the convicted insider-trader himself—as it builds an insider-trading case against former McKinsey & Co. head Rajat Gupta.
The regulator brought its own charges against Gupta—for the second time—simultaneously with federal prosecutors, who have laid criminal charges against Gupta for passing confidential information on to Rajaratnam. In addition to Gupta himself and Rajaratnam, who was sentenced to 11 years in prison after a trial which featured Gupta's voice on wiretaps, the SEC may want to question "one or both" of Rengan and Ragakanthan Rajaratnam, both of whom worked at Galleon. Rengan was named as an unindicted co-conspirator in his brother's criminal trial, and he too was heard on the wiretaps at the center of that case.
Gupta is accused of tipping Rajaratnam about Goldman Sachs and Proctor & Gamble, on whose boards he served. He has denied any wrongdoing.
In addition to Gupta and the Rajaratnams, the SEC said it hoped to depose people they worked with, as well as people who served on the Goldman and P&G boards with Gupta.
Kevin McGrath, a lawyer for the SEC, asked that the depositions be postponed until after Gupta's criminal trial, set to begin in April, as they could become "moot" based on the conduct and outcome of that trial. Gupta's lawyer, Gary Naftalis, objected, noting that the SEC made the "tactical" decision to sue Gupta now.
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…